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Committee hears governor-requested proposal to fund $2 million in one-time grants to shelters, sponsor says county allocation prevents duplication

2386499 · February 24, 2025
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Summary

House Bill 310 would appropriate $2 million in one-time grants for emergency shelters, administered by the Department of Commerce with a 0.75 FTE for grant administration. Sponsor and proponents emphasized flexible fund use for staffing and operations, a per-county cap and point system to encourage geographic distribution.

House Bill 310 would authorize a one-time $2 million grant program administered by the Department of Commerce to provide matching grants to homeless shelters across Montana. Sponsor Representative Nicole (transcript: "Nicola Caucus") said the program is designed to distribute funds by county (maximum $250,000 per county) and to use a point system that rewards geographic diversity and encourages collaboration among multiple shelters within a county.

Sponsor testimony framed the program as flexible funding shelters can use primarily for staff and operations, noting that infrastructure grants awarded last session (a separate construction program funded with $5 million) had limited applicants. The Department of Commerce’s fiscal witness (Mandy Rambo, Deputy Director/Acting Director) said Commerce prepared the fiscal note for the amended bill and described the administration assumptions for the 0.75 FTE and $367,595 over four years for administration and reporting.

Proponents included shelter operators and statewide coalitions: Braden Erickson of Butte Rescue Mission and Christopher Craiger of Samaritan House (Kalispell) described high utilization and rising demand in their communities and supported funding for additional case managers, peer support specialists and basic operating needs (kitchen equipment, appliance replacement). Patrick Yawake (representing Blackfeet, Fort Belknap and Chippewa Cree interests) and Ella Smith of the Montana Coalition to Solve Homelessness also testified in favor, describing the need across tribal and rural communities and the program’s potential to prevent costs to hospitals and jails.

Committee members asked whether the program is intended as one-time money. The sponsor said it is a one-time appropriation and the bill includes a termination provision (06/30/2027) per staff counsel’s reading; Commerce said the administrative workload could extend across biennia to monitor grants and reporting if grants are structured over multiple years. The Department of Commerce and DPHHS witnesses outlined other existing programs and federal grants that address homelessness (ESG, HOPWA, HUD VASH, housing stability supports) and estimated that commerce and HHS currently direct more than $4.2 million per year in federal and state funds to address homelessness in various forms.

Commerce’s fiscal note estimated 40 grant awards of $50,000 (with a 1:1 match) and included a 0.75 FTE and administrative costs; proponents questioned whether 0.75 FTE and the stated administration cost might be high relative to amount awarded but supported funding the administration if needed to ensure oversight and reporting.

No committee vote on House Bill 310 is recorded in the transcript of this hearing. The sponsor asked for a Do Pass recommendation.

Why it matters: Proponents said many shelters are over capacity and understaffed; flexible one-time grants with a point system and county caps aim to spread resources across both urban and rural/tribal communities and prioritize geographical equity and match commitments.